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What Is a Cryptocurrency Airdrop? A cryptocurrency airdrop is a marketing strategy that involves sending coins or tokens to wallet addresses. Small amounts of the new virtual currency are sent to the wallets of active members of the blockchain community for free or in return for a small service, such as retweeting a post sent by the company issuing the currency. The ultimate goal of a crypto airdrop is to promote awareness and circulation of a new token or coin.
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Layer 1 and Layer 2: An Overview Layer 1 and Layer 2 blockchain scaling solutions are improvements to the throughput—or processing speed—of any cryptocurrency blockchain network. They can include protocol updates or additional network solutions to help process more transactions. Layer 1 includes updates such as changing block sizes, consensus mechanisms, or splitting the database into multiple parts (known as sharding). Layer 2 includes rollups (bundling transactions), parallel blockchains (known as side chains), and off-chain handling of transactions (known as state channels). Why Layer 1 and Layer 2 Scaling Solutions Are Important A blockchain is a decentralized network of nodes that processes crypto transactions independently, with consensus protocols that verify the accuracy of the transactions. The transactions are then recorded sequentially, forming a chain of data blocks that can’t be changed.
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games? Summary of play-to-earn gaming Play-to-earn is a type of video game that rewards players for their in-game achievements with assets that have real-world monetary value. The financial services sector isn't the only area that blockchain technology has impacted. Its key characteristics of decentralization and immutability have also allowed it to revolutionize different aspects of the entertainment industry too. Play-to-earn (P2E) has emerged in the last few years as one of the hottest new frontiers in online gaming. By combining the worlds of cryptocurrencies, non-fungible tokens (NFTs), and decentralized finance (DeFi), play-to-earn crypto games allow players to acquire digital assets that have real-world value in return for their in-game achievements.
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What Is Bitcoin? Bitcoin (BTC) is a cryptocurrency (a virtual currency) designed to act as money and a form of payment outside the control of any one person, group, or entity. This removes the need for trusted third-party involvement (e.g., a mint or bank) in financial transactions. It is rewarded to blockchain miners who verify transactions and can be purchased on several exchanges. TABLE OF CONTENTS By THE INVESTOPEDIA TEAM Updated May 16, 2024 Reviewed by JULIUS MANSA Fact checked by AMANDA JACKSON Part of the Series Bitcoin Basics What Is Bitcoin? Bitcoin (BTC) is a cryptocurrency (a virtual currency) designed to act as money and a form of payment outside the control of any one person, group, or entity. This removes the need for trusted third-party involvement (e.g., a mint or bank) in financial transactions. It is rewarded to blockchain miners who verify transactions and can be purchased on several exchanges. Bitcoin was introduced to the public in 2009 by an anonymous developer or group of developers using the name Satoshi Nakamoto. It has since become the most well-known cryptocurrency in the world. Its popularity has inspired the development of many other cryptocurrencies. Read on to learn more about the cryptocurrency that started it all—the history behind it, how to mine it, buy it, and what it can be used for.Understanding Bitcoin In August 2008, the domain name Bitcoin.org was registered. It was created by Satoshi Nakamoto and Martti Malmi, who worked with the anonymous Nakamoto to develop Bitcoin.$BTC
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